An investor in SunTrust Banks, Inc. (NYSE: STI) Capital IX 7.875% Trust preferred shares has filed a proposed securities class action lawsuit in the United States District Court for the Northern District of Georgia on behalf of those who acquired SunTrust Capital IX 7.875% Trust Preferred Securities issued SunTrust Banks in its February 2008 public offering against SunTrust Banks, Inc. (NYSE: STI) over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges that SunTrust Banks, Inc. (NYSE: STI) and certain of its top officials and underwriters violated the Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. Specifically, so the lawsuit, on February 27, 2008, SunTrust filed a prospectus supplement to a shelf registration statement/prospectus dated October 18, 2006, pursuant to which SunTrust sold 27.6 million units of the Trust Preferred Securities to the public at $25 per unit, for proceeds of approximately $690 million and that the representations made in this registration statement/prospectus were materially false and misleading. Then on January 22, 2009, SunTrust announced a significant increase in its provision for loan losses along with the release of its earnings for the fourth quarter of 2008. At that time, SunTrust Banks reported its first quarterly loss in two decades and cut its quarterly dividend from $0.54 to $0.10 per share. When this news became public, the price of the Trust Preferred Securities began to decline. SunTrust Banks, Inc. is a diversified financial services holding company whose businesses provide a range of financial services to consumer and corporate clients. SunTrust Banks, Inc. is located in Atlanta, GA and had $179billion in total assets and $189billion in total assets in 2008. SunTrust reported a net income of $1.634billion in 2007 and $795.77million in 2008. STI Shares of Suntrust traded at $15.05 per share on Friday May 15, 2009, down from a 52WeekHigh of $64.00 per share.